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Multiple newspaper chains close to defaulting

Plummeting ad sales combined with huge amounts of debt have many newspaper chains facing the real possibility of defaulting on loan agreements.

Among other things, classifieds ads used to be a major moneymaker for newspapers. But websites like CraigsList and eBay have greatly reduced classified ad income, an instructive example indeed of how the net continues to be disruptive technology.

Newspapers do serve an important purpose, but it’s difficult to see how they will survive, much less prosper.